Macy’s inks extension with Vornado for 646K SF space at 11 Penn Plaza

Macy’s has inked a lease extension with Vornado Realty Trust for its 646,000-square-foot space at 11 Penn Plaza, GlobeSt.com reported

The retailer — which is the 1.1 million-square-foot building’s anchor tenant — signed a deal that will keep it there through 2035. According to the New York Post, Scott Gottlieb, Michael Laginestra, Michael Wellen,Ken Meyerson and Patrick Nelson of CBRE represented Macy’s on the deal.

The Cincinnati, OH-based Macy’s reported on Tuesday that 2012 marked its fourth consecutive year of double-digit growth in earnings per share. “Going into 2013, our team is moving ahead with new plans and actions to sharpen our approach to localized merchandise assortments and marketing,” Terry Lundgren, Macy’s chief executive, said in a statement.

Earlier this year, Vornado completed a $330 million refinancing of the building — located at 150 West 32nd Street across from Madison Square Garden — with HSBC. The real estate investment trust owns about nine million square feet of commercial space in the Penn Plaza District. [GlobeSt.com and NYP, 5th item] –Hiten Samtani

In itself, the growth of Macy’s definitely represents an upswing in the economy. Macy’s would have never inked out a deal for additional space less than a block away from its flagship location if it did not expect to make a profit from sales at the new locale. The deal also exemplifies the growth of the west side of the Manhattan, which, in the past, was considered underdeveloped compared to the rest of the city. Definitely representative of increasing real estate prices in the area.